CONTROL OVER THE ENFORCEMENT OF COURT DECISIONS IN COMMERCIAL, CIVIL, AND ADMINISTRATIVE CASES

09/12/2024

On 21 November 2024, the Verkhovna Rada of Ukraine adopted the Law of Ukraine “On Amendments to Certain Legislative Acts of Ukraine on Improving Provisions on Judicial Control” (Draft Law No. 9462 dated 6 July 2023).

Novelties by the Law:

1. The law clarifies the procedure for lodging complaints against actions taken by public and private bailiffs. It extends the      deadline for filing complaints and establishes clear requirements for their submission and handling.

2. Obligation to Submit Reports on Enforcement

• In non-property commercial and civil disputes, courts may now require the debtor, upon the claimant’s request, to submit a report on the enforcement of the court decision.
• For state bodies, local government authorities, or state or municipal enterprises, courts may demand such reports regardless of the nature of the dispute.

3. Penalties for Non-Compliance

• In case of failure to enforce a court judgement, debtors or their directors may face fines ranging from 20 to 40 times the minimum subsistence level.
• For collegial bodies, fines may be imposed on each member who fails to act within their remit to enforce the court’s decision.

4. Flexibility in Enforcement Methods

• If a debtor fails to comply with a court judgement, creditors now have the right to apply to the court for a change in the enforcement method. This may include recovering the value of the debtor’s property as stipulated in the court’s decision.

5. Improved Appeal Procedure

The law refines the appeal process against bailiffs’ actions by extending the time limits for filing appeals and providing clear requirements for their execution.

Significance of the Law

This legislation introduces stronger accountability measures for debtors and enhances mechanisms for protecting the rights of creditors. Key benefits include:

• Holding state and municipal authorities accountable for failing to comply with court orders.
• Empowering courts to impose fines on defendants, debtors, or their managers (for legal entities), payable to the state budget under Articles 135 of the Commercial Code of Ukraine and 148 of the Civil Procedure Code of Ukraine.

By improving the enforcement framework, the law strengthens judicial authority and promotes a more effective legal system for resolving disputes.

 

NAZALI TAX & LEGAL

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